Buy Now or Wait for the Dip? — Decision Math

Three calculators, one honest question: deploy now, wait for the dip, or split? Worked article example (target 2×, dip at 0.5×, 30% dip probability, €1,000): all-in-now €2,000 expected · wait-for-dip €1,900 · 50/50 split €1,950.

All in now (EV, example)
€2,000
Wait for dip (EV, example)
€1,900
Split 50/50 (EV, example)
€1,950
Dip-safe leverage ceiling (−20% dip)
4.88×

Compare mode ranks the three entry strategies by expected value across every dip probability. Allocation mode finds the risk-adjusted optimal split between deploying now and reserving for the dip (CRRA utility, γ=1 = Kelly growth-optimal). Leverage mode shows the liquidation price of a leveraged long and the dip-safe ceiling — the leverage at which your own expected dip becomes a total loss.

Everything is computed in your browser from your own assumptions; no data leaves the page. Not financial advice — a decision aid for thinking clearly about assumptions you already hold.

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Dip Decision Tool

Buy now, wait for the dip, or split? Make your assumptions explicit — the rest is math.

BACKTESTING ARENA · DECISION MATH

Buy Now or Wait for the Dip?

YOUR ASSUMPTIONS
Target price2×
where you believe price is heading (× today)
Dip price0.5×
the level you'd wait to buy (× today)
Dip probability30%
chance the dip is actually reached
Rise probability100%
chance the target is reached (rarely 100%)
Failure price1×
where price ends if the rise fails (× today)
Split — deploy now50%
rest is reserved for the dip
Capital1000
EXPECTED VALUE
EV-OPTIMAL
All in now
Deploy everything at today's price and hold.
€2,000
2.00× per € committed
Wait for dip
Hold cash; buy only if the dip is reached.
€1,900
1.90× per € committed
Split entry
50% now, 50% reserved for the dip.
€1,950
blended
On expected value: ALL IN NOW wins by €100.

All-in-now is EV-optimal while the dip probability stays below 33%. Above that, waiting wins.

READ BEFORE YOU TRUST THE NUMBER
  • Expected value is not risk. Maximising plain EV always points to an all-or-nothing corner. An interior split is only "optimal" once you price in risk — that is what the γ slider does.
  • γ = 1 is growth-optimal (Kelly-style). It maximises long-run compounding, not a single outcome. Lower γ chases the highest average; higher γ protects against missing or losing.
  • Garbage in, garbage out. The prices and probabilities are your subjective assumptions. The tool makes them explicit and consistent — it does not make them true.
Not financial advice. A decision aid for thinking clearly about your own assumptions. · Study the Past — Improve your Future. 🥋